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Saturday, August 15, 2009

Search Engine Strategies SJC Recap

streeeinsteinWhile attendance at SES San Jose was definitely down this year, it was still a great show.  I enjoyed meeting people at our booth and appreciated the hard work of our team pulling that all together.  We met a lot of interesting folks and enjoyed hearing feedback on new Click Forensics dashboard.

The big hit, of course, were the "Stress Einstein" squishys! Who wouldn't want of these guys!  They reminded me of the bobble-heads in "Night at the Museum 2" :)

I also enjoyed participating in a session titled, "Ads in a Quality Score World".   Mike Grehan moderated the panel and both Yahoo (Tomaso Pozzi) and Google (Jonathan Alferness) participated.  WebProNews covered the session and wrote a nice recap.  My presentation is below.

[slideshare id=1858957&doc=ses0809-090813202600-phpapp01]

cqcsjc09The other highlight of the week for me was our Click Quality Council dinner.  We had of 25 executives from ad networks, publishers, advertisers and search engines join us for a great dinner of conversation, networking and fun!

The conversation is always interesting when you have people representing all corners of the online advertising ecosystem.  It was the third year we have hosted the CQC dinner in San Jose and our 13th since the Council was formed in 2006.

Tom Cuthbert

Friday, July 10, 2009

Building on a Foundation of Success: IAB Guidelines

Over the past week four major players in the online media space have announced accreditation to the Interactive Advertising Bureau’s Click Measurement Guidelines.  This list includes Yahoo!, Google, Microsoft and Business.com.  I wanted to take a moment and explore why you should care about this development and what accreditation means for advertisers.

The IAB is a publisher-focused organization that has led the process to develop click measurement guidelines.  The task force is made up of thirty or so companies representing the online advertising community.  Click Forensics has been a member since day one and participated in every step of the process.

There are three main benefits for advertisers and conversely, three concerns advertisers need to keep in mind associated with the entire process.  First, the benefits;

IAB Accreditation Represents a Commitment
The process to become accredited to the IAB guidelines is time consuming and certainly not free.  At Click Forensics, we have first hand knowledge of this and can assure you that any company that takes time and spends the money to become accredited is committed to their customers.  The level of detail the auditors go in to is amazing.  Our community is fortunate to have auditors that have demonstrated a deep commitment to both the development of the process and the implementation of the guidelines.

IAB Accreditation Demonstrates Leadership
The IAB established a gating period to allow member companies and others to become accredited to the guidelines.  The companies mentioned above were the first to announce compliance.  This is important because it represents a sense of urgency among these four that enhances the urgency for others.  As an advertiser, you should reward these leaders with business.  They were first out of the gate and in my book that demonstrates leadership.

IAB Accreditation Means Better Quality Traffic
The IAB Guidelines are a lengthy narrative of “best practices” and rules in delivering quality traffic to advertisers.  While it is not intended to be a complete list, it serves as a firm foundation and includes practical steps to help ensure advertisers get what they pay for.  By working with an accredited ad provider, advertisers will be assured that the clicks they are buying have met the guidelines established by the industry.  This is a good thing and an excellent first step.

While we applaud the efforts of the IAB, Media Rating Council and member companies who participated in this process, there are things advertisers need to keep in mind.  There was a great deal of discussion and debate during the nearly three years of meetings it took to develop these guidelines.  In that process, there were a lot of valuable and important items that fell to the floor.  This is a good start, not a perfect process.  Keep in mind the following;

IAB Accreditation is a “Moment in Time” Process
The process for an ad provider to become accredited is a long one.  The auditor is invited in for a pre-assessment then the actual audit begins.  At the end of the process accreditation is awarded.  The problem is there is no mechanism for ongoing compliance.  When we buy gas at the gas station there is a meter that is routinely calibrated to ensure that when we fill our tank with 20 gallons of gasoline, we get 20 gallons.  This approach is not taken nor addressed in the guidelines.  While an annual audit is suggested in the guidelines, it is still important for advertisers to be monitoring their campaigns and holding the ad providers feet to the fire for every click.

IAB Accreditation Does Not Cover Everything
The 27 page Guideline document is quite comprehensive.  Our task force worked hard to ensure that both the guidelines are made clear and that the standard for measurement is defined.  However, when you consider that the dominant constituency in this process was multibillion-dollar ad providers, you might imagine not everything met their liking.  A few examples of chaff that hit the threshing room floor included:

Click ID – Each click should have a unique identifier so investigations can be “apples to apples”
Persistent Cookie – It’s important that ad providers can identify unique visitors to ensure they are billed for only once.
Standards for Investigation – Advertisers deserve to feel confident that they get what they pay for.  By setting an investigation format and agreeing to a timeline, ad providers can build trust with customers.

IAB Accreditation is a Roadmap
There is a Japanese proverb that says, “Beginning is easy and continuing is hard”.  There is truth in this as it relates to the guidelines.  We have begun the process.  We have released guidelines that will make the world of online advertising a better place.  Now we should look to leadership to take the next step and continue what we have begun.  The current guidelines will serve as a roadmap to the future standards.  We need to examine the items removed, listen to the community and think of better ways to ensure advertisers get what they pay for in the future.  The roadmap has been built.  Now we need to move on.

In January of 2006 as Click Forensics was just beginning as a company, I wrote the following challenge to our industry:

“Define standards for what an unwanted click looks like. We believe that there are certain characteristics or attributes that are common to a large percentage of click fraud. We are working with publishers and advertisers to agree on common ground and work together to expose it. Once this is developed it should be published so that the entire community can benefit from it.”

Today, over three years later, we have the cooperation of community leaders, the foundation of technical standards and the desire to continue to improve on what we have built.  I invite you, to join us as we build a future of ongoing growth and improving effectiveness by enhancing the process of online advertising.  I can assure you that both the Click Quality Council and Click Forensics will continue to support the work of the IAB and other industry organizations to work together to make our community a better place.  Let's not stop with the foundation.

Tom Cuthbert

Friday, June 12, 2009

Scareware… the Next Internet Ripoff

From spyware to bots to viruses and other unimaginable hazards… the web can be a scary place.  FakeAlertAAHAs far back as Prodigy in the early days of the online world, scams have been a part of the party.  The Internet is simply a new way for the bad guys to rip off unsuspecting consumers.  The key difference though is that the reach is enormous and the damage can spread to more people, more quickly than ever before.


Enter scareware, new way to trick unsuspecting consumers into parting with their money.  USA Today recently had an article about the tricks and tactics used to perpetrate this latest rip off.  Unfortunately, online advertising has become an accomplice to the crime.


Scareware is worthless software that allegedly removes viruses from your computer.  Anyone who has surfed the web knows how easy it can be to become infected with a virus.  The damage to the users computer is often measured in slowed performance, unwanted clicking and potentially even more nefarious things like key logging and password swiping.  Now, the bad guys are selling “scareware” to solve a problem that may not actually exist.


The first such program was called “SpySheriff,” built by a team of cyber crooks from Russia.  The Anti-Phishing Working Group recently reported that scareware infections rose 48% in the second half of 2008.  The growth is tied to the ease of distribution and weaknesses in online advertising and the web in general.


There are several ways these fake products are being distributed.  Phony pages are created using hot search key words such as “American Idol” or “iPhone” and drive the unsuspecting consumer to the infected page.  Recently the Facebook email scam was used to send people to a page by promoting things like “best video.”  Since these emails came from your friends, millions clicked.  Twitter has become a vehicle for distribution. Phony Twitter accounts are created and enticing titles of posts encourage people to click.

Additionally, the bad guys are simply buying display or search ads.  They rotate in infected pages to the landing page.  It is virtually impossible for an ad provider to scan every ad impression and linking page.  This loophole creates an opportunity for the bad guys to drive significant traffic to infected pages at a very low cost.  Microsoft reported finding 4.4M installations of one such program, so the scale is enormous.  Do the math… at $49 or $79, that is big business.


Once someone lands on the page, getting off is nearly impossible.  Immediately upon landing, a “system scan” begins.  The results are, of course, showing that your computer is infected with a number of viruses.  Conveniently you can buy the product at that point and they take your money and run.  If you try to move away from the page, or cancel, an endless number of scans take over your screen.  Essentially, users must “control/alt/delete” their way out or restart.


The danger in this scam is not limited to monetary damage to the consumer.  These type of pages and methods to attract clicks are the same methods used to install spyware, malware and perpetrate click fraud.  To their credit, USA Today has done a good job over the last few years of highlighting the dangers of the web to the average consumer.


The FTC is cracking down.  They have identified products like WinFixer, DriveCleaner and XP AntiVirus as worthless and they are going after the owners.  The problem is that like the click fraud crooks, these guys are in remote locations and move their servers often. Tracking them is a full time job and extremely difficult.  The search engines are trying to help as well.  bingad assuranceBing has a neat feature that highlights “at risk” url’s.  Yahoo has similar product built with McAfee.


Trust is what keeps consumers clicking on ads.  Without stepped up industry efforts from organizations, like the Anti Phishing Working Groups and others, trust could be diminished.  Like click fraud, scareware is damaging trust.  It takes a community effort to stay after the problem and build solutions to take the scare out of the internet.


Tom Cuthbert

Wednesday, June 3, 2009

Welcome Bing!

Let's face it, Google needs a competitor.  Microsoft is ready to give them a run for their money (and it's a lot of money). Bing NeedleLast night, here in Seattle, Microsoft lit up the Space Needle to celebrate the launch of Bing.  Time will tell how big an impact Bing will have in search, but history may be on the Microsoft's side.

[caption id="attachment_647" align="alignright" width="300" caption="Browser Wars"]Browser Wars[/caption]

As recently as 1997, Netscape had a 80%+ share of the browser market.  Wikipedia recalls the IE 4 release in October of '97..."The release party in San Francisco featured a ten-foot-tall letter "e" logo. Netscape employees showing up to work the following morning found that giant logo on their front lawn, with a sign attached which read "From the IE team." The message also read "We Love You."

By 2002, Microsoft had a 96% share.

As we say in the sports business, "Don't sleep on Microsoft".

[brightcove vid=25062206001&exp=1543292789&w=486&h=412]

Sure there will be lots of head to head comparisons between Google and Bing.  But so far, I'm impressed...

Wondering what Google has on their front lawn this morning :)

Tom Cuthbert

Saturday, May 30, 2009

AOL... I Finally Got One Right!

It was January of 2000 and I was in my usual Tuesday morning breakfast group with my friends at Jim's.  We spent time talking about life, family and business.  My friends Matt and Shawn were far wiser than I when it came to business and technology (successful tech entrprenuer and Harvard MBA, respectively).  I was still learning the tech space and was just months away from co-founding my first tech company.  Despite my poor track record (I had recently bought stock in Pancho's Mexican Buffet.... don't laugh!) and lack of experience, I saw this disaster coming.

From the early days of the internet, I was there. (You may remember me as 635287874@prodigy.net)  aol-logoI had an AOL account even before those CD's started showing up at the checkout line at 7-Eleven.  I didn't know much, but I did know that marrying a red hot new technology company with an old school media firm was a bad idea.  It couldn't work and it didn't work. When the AOL-Time Warner merger was announced in January 2000, the combined market capitalization was $280 billion. Today it is $28B.

saichart052909-timewarnerSo here we are, eight years and billions of dollars in lost shareholder value later.  Now what?  First of all, the spinout makes perfect sense.  It will allow Armstrong and the gang to attempt to rebuild a once proud company into something at least relevant.  It also positions AOL to be a new media company by finding creative ways to leverage the assets (audience) into profit.  I saw the plan and I think it makes sense...

Silicon Alley describes the heart of the plan as making AOL more "Google-y".  There is white space below Google.  They own a ridiculous share of the search market and someone will take away market share over the next few years.  Add to that that online advertising continues to grow while traditional media implodes and poof, you have a market opportunity.  AOL is uniquely positioned to play in this space if they fully leverage their assets including ADTECH, Platform A and others.

Remember when you went to America Online, errr... I mean AOL, to read content?  They have audience, content and connecting the dots means revenue growth.  I am pulling for them now, in 2000 I was not.  The strategy then was to try and retain the "walled garden" approach and milk dial up income for as long as possible.... bad idea.

Good luck Tim, you'll need it.  But you have a shot, and that puts you well ahead of your friends back in 2000.

Tom Cuthbert

Friday, May 15, 2009

The Buzz on Click Fraud

The New York Times ran a feature article this week on click fraud.  Why you ask?  Because, like spam, click fraud is still a big problem for advertisers. The article pointed out that as the economy tilts downward, advertisers cannot afford to waste dollars. This is a good news, bad news scenario for online advertising.


The good news is that online advertising is highly measurable.  Large advertisers that traditionally have been offline are now shifting dollars online.  This fact has contributed to online advertising continuing to grow as traditional media is in decline.


The bad news however, is that this window of opportunity is narrow.  The online advertising community must embrace measurability and enhance trust to gain share of spend from the big guys. 


There was a significant event this week that helped in that effort.  The Interactive Advertising Bureau (IAB) released from draft the Click Measurement Guidelines.  This document, three years in the making, is a great start for our community to come together around standards and enhance trust. Dozens of ad providers are busily working with third party audit firms to become accredited to the new guidelines.  Advertisers will have a way to gauge the level of commitment from ad provides when this list is made public.


Click Forensics was proud to represent advertisers in this process.  In fact, we were the only traffic quality management firm to participate and were quoted in the press release from the IAB.  Many thanks are in order for the 38 members of the working group for a job well done.


Now, we find ourselves at the beginning.  An opportunity exists to build on the foundation laid by the IAB member companies.  Click fraud is going to be a problem for a long time to come.  Progress is being made.  But in order to re-accelerate the growth of online advertising we need more than standards.  We need a community effort to work together to ensure advertisers have confidence that they get what they pay for.  Articles raise awareness, documents create a process and awareness builds urgency.  But ultimately it will take the effort of everyone in the community to get to the day where trust is commonplace and online advertising becomes the marvelous, measurable media it can be.  We look forward to continuing our efforts toward that goal.


Tom Cuthbert

Wednesday, May 6, 2009

Why the Wall St. Journal Rocks

kindlecomp4Recently, I've been griping about my local paper and newspapers in general.  The industry is in turmoil and changing rapidly.  One big change will be the way the paper will be read in the future.  Today's announcement about the Kindle DX will make it easier for people like me to eventually switch to a digital reader.  I like this idea and I cannot imagine how newspapers today, in their current form, will survive, except for one...  the Wall St. Journal.

I have been an avid Journal reader for years.  The paper has changed for the better in recent years and is setting the pace for an industry in transition.  In fact, of all major newspapers in this country, the Wall St. Journal was the only one to INCREASE paid subscribers in the last month.  While an entire industry cuts content, moves online or folds all-together how can it be that the Journal grows?  

There have been several recent changes that I believe have enhanced the reading experience, broadened appeal and made the paper more useful.  That list includes:

  • wsj-graph4Added sports coverage

  • Adjusted the physical size of the paper

  • Enhanced the paid online version

  • Launched an iPhone app

  • Produce excellent podcasts and vidcasts

  • Broadened appeal with health, tech and travel

  • Reformatted the front page for easy scanning


But beyond these enhancements, fundamentally the I enjoy the Journal for three reasons.  First, the perspective is conservative yet thoughtful.  The OpEd page is engaging and thought provoking.  The editorial page in my local paper has become predictable and mundane.  Any column worth reading was syndicated from another paper.  There are essentially no independent thinkers or interesting writers.  While I don't always agree with Peggy Noonan, Kim Strassel or William McGurn, I do respect their perspective. 

Secondly, the information I read in the Journal or hear on their podcasts is relevant to me.  Walt Mossberg and Katie Boehret are consistently exceptional with product reviews and insights.  The company coverage is great and news stories are engaging.  From travel to tech and health to book and wine reviews, it fits my lifestyle.

ed-aj106_pns030_ns_200903032043361Finally the Journal entertains me in an intelligent way.  Each day there is a story on the front page that delves into topics ranging from Bollywood to windmills.  I'm a sucker for Pepper and Salt, the funny cartoon (my recent favorite at left).  The writing style is accurate when needed and relaxed when appropriate.  I also find the podcast with Gordon Deal to be a great compliment to the paper.

So as newspaper executives across the country (and here in my hometown) are scratching their heads try to figure out why they are sinking, they should pick up a copy of the Journal.  I do... everyday.

Tom Cuthbert